Wolseley profit jumps 30pc with US boost
Building supplies company Wolseley said third-quarter operating profit jumped 30 per cent, lifted by a healthy repair and maintenance sector, and strong revenue growth in the U.S.
The world’s largest plumbers and building merchant said underlying operating profit soared to £131m in the third quarter to 30 April, from £101m in the same period last year.
This comes in ahead of an estimate from Deutsche Bank of £126m while revenue rose one per cent to £3.27bn.
“New residential construction, which accounts for 20 per cent of group revenue, remained subdued in most regions, while demand in repair, maintenance and improvement (RMI) segments held up well in most markets,” Chief Executive Ian Meakins said in a statement on Wednesday.
The company is rumoured to be in talks to sell units Build Centre, Electric Centre and Encon as part of its ongoing restructuring to sell off non-core assets.
In March, Wolseley said five of its businesses, including its French plumbing and heating company Brossette, were for sale, with decisions on the future of six others still to be made.
The FTSE 100 company added on Wednesday that like-for-like revenue growth was strongest in the U.S. market, up 10 percent in the quarter, as well as France and the Nordics, but was offset by weaker momentum in the UK and Canada.
Wolseley said it remained confident of meeting its expectations for the year, and as part of its drive to lower costs, net debt was lowered furthered to £824m, from £1.34bn a year ago.